Digital Dollar Costlier Than Real Dollar? What’s Up India?

It is already known the Indian government had taken a very strong stand against crypto currency and related trading activities. It is against the law and order to trade crypto and could potentially invite strict legal action.

However, the latest developments are suggesting that the crypto trading is still active in India, and we have no arrived at a point where a digital dollar is much costly than real dollar in India.

In India, a digital dollar now costs more than a real one as USDT, the token built to equal one US dollar, trades at 102.88 rupees on Indian exchanges.

The official dollar is 94.65. Indians are paying an 8.5 percent premium for a dollar, because their government just raided the companies that supplied them.

On June 17, India's Enforcement Directorate searched five crypto firms in Bengaluru and accused them of moving over 2,500 crore rupees, about 260 million dollars, across the border in stablecoins, bypassing the banks.

Those firms were the on-ramps that fed the country's USDT supply. After the raids, the importers went quiet, supply collapsed, and the local price of a dollar hit its highest in memory.

This has no resulted in a strong uprise in the digital dollar market while the actual dollar is trending at lower prices than the digital variant. This is an extremely interesting situation, and it has to be seen how the authorities will be reacting to the same.